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PUBLIC HEARINGS AND OTHER MATTERS 17. Public Hearing: P12-0042, City of Pleasanton —Consider an Ordinance to amend Chapter 18.44: C Commercial Districts, Special Purpose-CC Central Commercial District of the Pleasanton Municipal Code to designate financial institutions as a conditional use within the Downtown Revitalization District (Continued from April 3, 2012) Planning Manager Janice Stern presented the staff report; provided background on how the City has regulated financial institutions in the past and said that while the City recognizes them as a valuable downtown use it also wants to ensure the continued attraction of a wider range of retail uses. She reviewed the proposed modifications, which would subject financial institutions to a use permit if located in a Special Purpose-CC District or Planned Unit Development that references the CC District, located in a revitalization district, and it has frontage on Main Street. The property must meet all three of the conditions in order to trigger the use permit requirement; all other locations would remain as permitted uses. She noted that the intent is for these regulations to affect only those locations with ground floor frontage on Main Street and recommended that the Council direct staff to add language to that effect. In an effort to provide the Planning Commission with guidance when reviewing applications, the ordinance advises that it should discourage more than one financial institution within any one block of Main Street and discourage location on a corner property on Main Street, unless such location would contribute to vitality and pedestrian interest in the downtown. Existing financial institutions would remain as legal nonconforming uses. Once vacated, the space may be replaced with another financial institution within 180 days although the Council may wish to extend this timeframe based on several comments received. The Pleasanton Downtown Association reviewed the draft proposal and voted to support the changes. Staff also met with the Economic Vitality Committee, who provided general comments that they would prefer to see a more comprehensive approach to achieving the goals identified for the downtown area and integration into an updated vision for the downtown. The committee had concerns about creating nonconforming uses that do not provide for expansion, the length of time a property could retain its legal nonconforming status once vacated, and that there are no similar proposals to regulate other uses that might not be thought of as contributing to downtown vitality. It was also stated that rather than discourage, the committee would like to see a more positive approach to attracting the desired uses by marketing sites based on their specific infrastructure and capacity. The Planning Commission also recommended the proposed amendments to the Council and, in recognition of other comments, that staff explore changes to other permitted commercial uses in the downtown area, as they are able. Councilmember McGovern voiced difficulty in understanding the Downtown Specific Plan's position that financial institutions are considered to be similar to traditional retail uses. She also questioned the concept of discouragement, had trouble establishing a nexus between this and the purported intent of attracting corner storefronts that are vital to pedestrian traffic, and suggested that prohibiting such a use might better meet that intent. City Manager Fialho explained that the approach was not to prohibit the use specifically but rather to engage in an exercise that asks if the location makes sense for the economy and the community. Staff concluded that generally, there is a discouragement of financial institutions located at certain high visibility corners but that ultimately it is a discretionary exercise on the part of the Planning Commission and City Council. Based on economic conditions, there may come a time when property owners must rent such locations to a bank in order to fill their spaces. The proposed language is not necessary, but does give the ruling body a flexible basis for making decisions both today and in the future. Councilmember McGovern asked whether any other jurisdictions have studied the ratio of different retail establishments that best encourage a vital downtown community. City Council Minutes Page 4 of 11 May 1, 2012